Comcast Facing Lawsuit Over Set-Top Box Rentals

Multichannel News reports that a woman from California has initiated a potential class-action lawsuit against Comcast for making customers rent a set-top box without giving them the option to buy it outright. Quoting: "The action, on behalf of Comcast Corp. customer Cheryl Corralejo, alleges that the set-top rental practice represents an 'unlawful tying arrangement resulting in an impermissible restraint of trade.' In addition to violating the Sherman Anti-Trust Act, the suit alleges the practice violates business and professions codes. ... [It also notes] that premium video and the set-top descramblers are two distinct products, yet the cable providers require that the hardware be rented from cable companies, rather than permitting consumers to purchase the set-top hardware in the open market.

Comments

Re:Every state/city in the U.S.A. should file!!!

[Chaos Incarnate]

While it would be antitrust if their monopoly were one formed by conglomeration, cable is a bit different; in this case, each local city grants the company its monopoly. They chose to eliminate the competition; I don't think they have any ethical leg to stand on (though they may have a legal one) in claiming that there's no competition when it was deliberately eliminated by someone other than the cable providers.

Re:call me a cynic but ..

[billcopc]

Streaming Media is a huge hog of bandwidth, as the ISPs in the UK are discovering with the iPlayer [wikipedia.org] and other services. The ISPs and the content providers are currently in disagreement [theregister.co.uk] as to who should pay to upgrade the network infrastructure

In the good old days, people minded their own business. If you had a hot dog stand where you sold the best hot dogs at a busy intersection, the butcher didn't come to your stand to whine and moan about how he can't produce more hot dogs unless you bribe him. He just took all the money he earned from his supply business and reinvested it to increase capacity, and you kept on selling hot dogs without worrying about anything else.

If there is more demand on ISPs to deliver bandwidth to support their customer's usage, it is their responsibility to increase capacity to meet demand. If they cannot afford to do so, then it is the business model that is flawed. If they failed to account for future upgrades and the rather obvious explosion of telecommunications, that makes them poor businesspeople. It most certainly is not the fault of the customer nor anyone else.